How are BIDs funded and set up?
A BID is funded by businesses paying a small proportion (typically of between 1% and 2%) of their business rateable value towards the BID. This money is then ring-fenced for use only in the BID area – unlike Business Rates which are re-distributed by the Government. A BID can only be formed following consultation and a ballot in which businesses vote on a Business Plan which they have developed.
Why doesn’t the council already provide these services?
Councils are under increasing pressure to deliver a range of public services and simply do not have the finances to deliver the services which BIDs can. BIDs are however designed to deliver additional activity and generally enter into a legal agreement with public-sector bodies, such as Councils to ensure that they continue to provide core services, with the BID delivering projects above and beyond these standards. BIDs are therefore usually the best opportunity to make a real difference to the area.
Would all businesses be liable to pay the BID levy?
Small businesses with a rateable value of less than £7000 will be exempt from the levy but may choose to make a voluntary contribution if they wish.
How much money is generated?
The Ilkley BID area includes approximately 300 businesses which will generate approximately £680,000 over its 5 year term. The BID also expect to be supplemented by contributions from local businesses outside the town centre. BIDs are also often successful in gaining additional funding, because they are attractive to public sector bodies who are encouraged to matchfund money raised by the private sector through the BID.
How much will it cost my business?
The cost of the levy for each business is 1.5% of its rateable value. A small business with a rateable value of £10,000 would invest £150 per year, a medium sized business with a rateable value of £75,000 would invest £1125 per year and a large business with a rateable value of £150,000 would invest £2250 per year.
Isn’t this just a stealth tax?
No – the BID has been established to carry out projects over and above anything currently happening or planned in Ilkley so would deliver added value and activity in the key areas identified. Furthermore, the BID is governed by a Board made up of BID levy payers, who are tasked with ensuring that BID activities deliver additional impact to existing activities.